NEW YORK (TheStreet) -- Shares of PepsiCo, Inc. (PEP) are up 2.85% to $91.71 on very heavy trading volume after the company raised its forecast for the year, saying its new Lay's potato chips, including a cappuccino variety, should help boost its profit in the months ahead, the Wall Street Journal reports.
The company, which also owns Tropicana, Gatorade and Quaker, said global volume for both its snacks and drinks was up 1% in the second quarter.
The gains were relatively modest, but PepsiCo has been driving its financial performance with a cost-cutting plan expected to generate $1 billion in savings this year, the Journal said.
Must Read: Warren Buffett's 25 Favorite Growth Stocks
For the quarter, the company said net income slipped to $1.98 billion, or $1.29 per share, down 2%t from a year ago, as restructuring and impairment charges took their toll.
Adjusted for one-time charges, earnings were $1.32 per share, beating the $1.23 analysts expected, according to Zacks Investment Research.
Revenue was $16.89 billion, matching Wall Street forecasts.
TheStreet Ratings team rates PEPSICO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEPSICO INC (PEP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."